Scaling your firm can be problematic for business owners. If you scale too fast, any number of problems can arise and the solutions for those issues can often be difficult to identify and put into action. On the contrary, scaling too slow, can deter investors.
Lone Star Capital quickly identified this looming problem and set out to find a solution. The New York-based multifamily real estate investment firm, co-founded in 2018 by principal Rob Beardsley, looked to outsource its accounting needs and brought on Ascent Multifamily Accounting in order to keep back-office costs low as the firm expanded.
“We are a young company and have grown quickly,” said Rob, the author of The Definitive Guide to Underwriting Multifamily Acquisitions: Develop the Skills to Confidently Analyze and Invest in Multifamily Real Estate. “Bringing in Ascent from the beginning and having them fill those back-office requirements was critical for our overall success. It took as about three years to get to scale, and we could not have done it without Ascent.”
While some young firms try to keep back-office services in-house when they start off, many business owners come to realize that not outsourcing those functions can require much more revenue and investment. By launching with Ascent, Lone Star Capital and other growing firms are not dependent on significant investment and capital while they are still building up their companies.
“We quickly found that working with Ascent was much more cost efficient. Their services simplify your business and make it much easier to focus on what really matters to us and our investors,” Rob said.
Just four years after its inception, Lone Star Capital now owns 10 properties in Texas, predominately in Houston, with a total of about 2,500 units. The company’s acquisitions since 2018 amount to more than $350 million.
In addition to its growth in properties, Lone Star Capital has also experienced growth in staff. What started as only two employees has expanded to seven top-level team members at the corporate level, six at the management level and approximately 50 onsite employees.
Today, the company has scaled and is vertically integrated with their properties, and Ascent has scaled with them along the way. Looking toward the future, Rob said the company will continue to patiently scale its value-add strategy and grow Lone Star Capital’s portfolio. Rob and his team have also started the process of bringing construction management in-house.
“We have been able to expand our own services with an upcoming in-house construction management team, a new entity that was made possible with the help of Ascent,” Rob said. “Ascent is already handling the accounting, payroll and HR for that entity, in addition to the corporate accounting and HR services at the property level.”
There is an obvious solution for young companies looking to scale quickly and efficiently – by working with a firm that scales with you and handles your day-to-day back-office services so that you can grow at an optimal rate while keeping costs low and variables to a minimum.
With Ascent, no matter the size of your company, we can offer the scalability you need to help your business grow, just like Lone Star Capital. For more information on outsourcing your back office and scaling your operations with Ascent’s help, you can call me at 702-467-0789 or email at email@example.com.